Petroleum Project Economics

Petroleum Project Economics

COURSE TIMINGS
Registration and coffee will be at 7:30 on Day One.The course will commence at 8:00 and conclude at 16:00 followed by lunch. There will be two networking and refreshment breaks at appropriate intervals.

COURSE METHODOLOGY
The course will be interactive, and participants from various disciplines will be encouraged to participate openly to share views, ideas and experience in developing decision making. Case study methods will be included to stimulate discussions and illustrate concepts of the course.

COURSE PARTICIPANTS
Petroleum engineers, Facilities engineers, Project engineers

COURSE OUTLINE
Course Introduction
1. Introduction of participants, course outline, expectations
2. Petroleum Macro Economics
3. Supply and demand Energy economics Impact of economic growth on energy Affects of fiscal and monetary policy International and national impacts
4. Petroleum Micro Economics
5. Theory of the firm in the petroleum sector Revenue concepts - cash flow and revenue Cash flow versus profits Fixed costs versus variable costs Marginal costs How costs, revenues and profits vary with output
6. Project Economics
7. Revenues Capital and operating costs Taxes and royalties Depreciation Inflation
8. Capital Markets And Finance
9. Company financing Investment alternatives Cost of capital Market assessment of oil and gas stocks Times earnings
10. Capital Budgeting In The Petroleum Industry
11. Building blocks: reserves, resources and production forecasts Estimating project revenues over time Estimating costs and cash outlays over time Looking at net cash flows
12. External Factors Affecting Project Analysis
13. Economic growth of economies Oil prices Inflation rates Interest rates Interest rate yield curves Government takes
14. Decision Criteria And Cash Flow Analysis
15. Introduction to Net Present Value (NPV) Internal Rate of Return (IRR) Payback Profitability Discount rates Break-even analysis
16. Risk And Uncertainty In Decision Making
17. Identifying project risks in -Revenues-Production flows-Oil prices-Costs-Interest rates
18. Probability Concepts
19. Expected outcomes Probability curves Best and worst case scenarios Decision trees Psychology of decision making in uncertainty
20. Risk Management
21. Examining alternatives and their costs Abandonment Flexibility Hedging
22. Sensitivity Analysis
23. Identifying likely outcomes Weighted average cost of capital Examining rates of return under various scenarios
24. Corporate Analysis Of Risk And Return
25. Portfolio theory and diversification techniques Opportunity cost of capital Investment alternatives
26. Beyond The Numbers
27. Corporate views of risk Marketing, negotiations and concessions Presentation of project analysis results
28. Implementation in Indonesia